U.S. economy stalls in first quarter as activity weakens broadly

29 Apr 2016   Economy, USA

U.S. economic growth braked sharply in the first quarter to its slowest pace in two years as consumer spending softened and a strong dollar continued to undercut exports, but a pick-up in activity is anticipated given a buoyant labor market. Gross domestic product increased at a 0.5 percent annual rate, the weakest since the first quarter of 2014, the Labor Department said on Thursday in its advance estimate, also as businesses stepped up efforts to reduce unwanted merchandise clogging up warehouses. The economy was also blindsided by cheap oil, which has hurt the profits of oil field companies like Schlumberger ( SLB.N ) and Halliburton ( HAL.N ), resulting in business spending contracting at its fastest pace since the second quarter of 2009, when the recession was ending. “Although […]

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